Hugging Face and Nvidia: A $12.9 Billion Acquisition
Hugging Face built a $4.5 billion empire on free AI models. Now, in a stunning move, Nvidia is acquiring it for a staggering $12.9 billion.
The Deal
- Date: August 27, 2026
- Acquiring Company: Nvidia
- Target: Hugging Face
- Valuation: $12.9 billion (86x annualized revenue of $150 million)
Background
Thomas Wolf, co-founder of Hugging Face, has long advocated for open-source AI. In January, Hugging Face turned down a $500 million investment from Nvidia, valuing independence over a quick financial injection. Now, Nvidia has acquired the company for a substantial amount, nearly triple its 2023 valuation.
Hugging Face’s Journey
Hugging Face started as a platform for sharing open-source AI models, akin to GitHub for AI. Wolf, however, always prioritized working with talented individuals and addressing problems. This led to Hugging Face expanding into hardware, specifically robotics.
Their first consumer robot kit, Reachy Mini, launched last year and sold over 10,000 units. The company is on track to sell 20,000 this year.
Nvidia’s Acquisition Strategy
Nvidia’s latest acquisition is one of its largest, worth about thirteen days of sales based on their recent quarterly revenue. By securing Hugging Face, Nvidia gains control over the distribution layer of open-source AI, an area previously outside their control.
Wolf’s Vision
Wolf, who built his reputation on software, now leads a company valued at $12.9 billion, with a focus on vertical integration, including frontier models, robotics, and enterprise storage.